As a result of mark-to-market accounting rules, Republic Bancorp, Inc. ("Republic" or the "Company") expects to record a material, non-cash Other-Than-Temporary-Impairment ("OTTI") charge during the fourth quarter of 2008 related to four of its non-agency mortgage backed securities. All of these securities were originally rated AAA by Standard and Poor's ("S&P") at the time of purchase and have since been downgraded. Based on October 31, 2008 market values, the after-tax OTTI charge would be approximately $2.8 million or $0.13 per diluted Class A Common share. The Company will finalize the amounts of these impairment charges in connection with the preparation of its fourth quarter 2008 financial statements.

For the first nine months of 2008, Republic reported net income of $33.0 million, representing a $14.5 million, or 79%, increase over the first nine months of 2007. The Company also reported diluted earnings per Class A Common share of $1.59 for the first nine months of 2008, an 81% increase over the first nine months of 2007. Giving consideration to the expected OTTI charge based on October 31, 2008 market values, the Company and the Bank continue to exceed all regulatory capital requirements necessary to qualify as well capitalized. In addition, if the entire remaining non agency mortgage backed and mortgage related security portfolio was written down to a value of zero dollars, the Company and the Bank would continue to exceed all regulatory capital requirements necessary to qualify as well capitalized.

The following table presents Republic Bank & Trust Company's "well-capitalized" regulatory capital position relative to its respective requirements at September 30, 2008 on a historical and pro-forma basis giving effect for the expected OTTI charge based on October 31, 2008 market values. In addition, the Company has set forth below a pro-forma capital ratio illustration as of September 30, 2008, assuming the entire non-agency mortgage backed and mortgage related portfolio was written down to a value of zero dollars:

                                           Pro Forma     Pro Forma         Minimum
                                           09/30/08      09/30/08        Regulatory
                           As Reported     with OTTI     Assuming      Threshold to be
                            09/30/08        Charge      Zero Value    Well Capitalized

Tier 1 Leverage Ratio              9.02 %        8.92 %        8.62 %                 5 %
Tier 1 Risk-Based Ratio           13.74 %       13.61 %       13.15 %                 6 %
Total Risk-Based Ratio            15.66 %       15.53 %       15.07 %                10 %

For additional discussion of Republic's Other-Than-Temporary-Impairment analyses, see "Footnote 2. Securities" in the Company's Form 10-Q filed October 28, 2008.

Forward Looking Statements

Statements in this 8-K relating to Republic's plans, objectives, or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations. Republic's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic's 2007 Form 10-K and subsequent 10-Qs filed with the Securities and Exchange Commission.